I remain hopeful and determined to find a way forward toward a
resolution of the Israeli-Palestinian dispute.

The Israeli Plan:

I welcome the disengagement plan prepared by the Government of
Israel, under which Israel would withdraw certain military
installations and all settlements from Gaza, and withdraw certain
military installations and settlements in the West Bank. These steps
will mark real progress toward realizing the vision I set forth in June
2002 of two states living side by side in peace and security, and make
a real contribution toward peace.

I am hopeful that steps pursuant to this plan, consistent with this
vision, will remind all states and parties of their own obligations
under the roadmap.

The Path to Peace:

I believe certain principles, which are very widely accepted in the
international community, show us the path forward:
The right of self defense and the need to fight terrorism are
equally matters of international agreement.
The two-state vision and the roadmap for peace designed to
implement it, command nearly universal support as the best means
of achieving a permanent peace and an end to the Israeli occupation
that began in 1967.
United Nations Security Council resolutions have repeatedly spoken
of the desirability of establishing two independent states, Israel
and Palestine, living side by side within secure and recognized
borders.

Having these principles in mind, the United States is able to make
the following comments.

Peace Plans:

The United States remains committed to the vision of two states
living side by side in peace and security, and its implementation as
described in the roadmap. The United States will do its utmost to
prevent any attempt by anyone to impose any other plan.

Security:

There will be no security for Israelis or Palestinians until they
and all states, in the region and beyond, join together to fight
terrorism and dismantle terrorist organizations. The United States
reiterates its steadfast commitment to Israel's security, including
secure, defensible borders, and to preserve and strengthen Israel's
capability to deter and defend itself, by itself, against any threat or
possible combination of threats. The United States will join with
others in the international community to strengthen the capacity and
will of Palestinian security forces to fight terrorism and dismantle
terrorist capabilities and infrastructure.

Terrorism:

Israel will retain its right to defend itself against terrorism,
including to take actions against terrorist organizations. The United
States will lead efforts, working together with Jordan, Egypt, and
others in the international community, to build the capacity and will
of Palestinian institutions to fight terrorism, dismantle terrorist
organizations, and prevent the areas from which Israel has withdrawn
from posing a threat that would have to be addressed by any other
means. The United States understands that after Israel withdraws from
Gaza and/or parts of the West Bank, and pending agreements on other
arrangements, existing arrangements regarding control of airspace,
territorial waters, and land passages of the West Bank and Gaza will
continue.

The Two-State Solution:

The United States remains committed to the two-state solution for
peace in the Middle East as set forth in June 2002, and to the roadmap
as the best path to realize that vision.

The goal of two independent states has repeatedly been recognized
in international resolutions and agreements, and it remains a key to
resolving this conflict. The United States is strongly committed to
Israel's security and well-being as a Jewish state. It seems clear that
an agreed, just, fair and realistic framework for a solution to the
Palestinian refugee issue as part of any final status agreement will
need to be found through the establishment of a Palestinian state, and
the settling of Palestinian refugees there, rather than in Israel.

As part of a final peace settlement, Israel must have secure and
recognized borders, which should emerge from negotiations between the
parties in accordance with UNSC Resolutions 242 and 338. In light of
new realities on the ground, including already existing major Israeli
populations centers, it is unrealistic to expect that the outcome of
final status negotiations will be a full and complete return to the
armistice lines of 1949, and all previous efforts to negotiate a
two-state solution have reached the same conclusion. It is realistic
to expect that any final status agreement will only be achieved on the
basis of mutually agreed changes that reflect these realities.

Palestinian Statehood:

The United States supports the establishment of a Palestinian state
that is viable, contiguous, sovereign, and independent, so that the
Palestinian people can build their own future in accordance with the
vision I set forth in June 2002 and with the path set forth in the
roadmap. The United States will join with others in the international
community to foster the development of democratic political
institutions and new leadership committed to those institutions, the
reconstruction of civic institutions, the growth of a free and
prosperous economy, and the building of capable security institutions
dedicated to maintaining law and order and dismantling terrorist
organizations.

Palestinian Obligations:

Under the roadmap, Palestinians must undertake an immediate
cessation of armed activity and all acts of violence against Israelis
anywhere, and all official Palestinian institutions must end incitement
against Israel. The Palestinian leadership must act decisively against
terror, including sustained, targeted, and effective operations to stop
terrorism and dismantle terrorist capabilities and infrastructure.
Palestinians must undertake a comprehensive and fundamental political
reform that includes a strong parliamentary democracy and an empowered
prime minister.

Israeli Obligations:

The Government of Israel is committed to take additional steps on
the West Bank, including progress toward a freeze on settlement
activity, removing unauthorized outposts, and improving the
humanitarian situation by easing restrictions on the movement of
Palestinians not engaged in terrorist activities.

As the Government of Israel has stated, the barrier being erected
by Israel should be a security rather than political barrier, should be
temporary rather than permanent, and therefore not prejudice any final
status issues including final borders, and its route should take into
account, consistent with security needs, its impact on Palestinians not
engaged in terrorist activities.

Regional Cooperation:

A peace settlement negotiated between Israelis and Palestinians
would be a great boon not only to those peoples but to the peoples of
the entire region. Accordingly, all states in the region have special
responsibilities: to support the building of the institutions of a
Palestinian state; to fight terrorism, and cut off all forms of
assistance to individuals and groups engaged in terrorism; and to begin
now to move toward more normal relations with the State of Israel.
These actions would be true contributions to building peace in the
region.